Industrial output down 0.7 percent: MOEA
By John Liu, The China PostTAIPEI, Taiwan -- The industrial production index registered at 103.67 in August, which was equivalent to a 0.7-percent drop year-on-year, according to a report released yesterday by the Ministry of Economic Affairs (MOEA).
September 27, 2013, 12:08 am TWN
More specifically, the manufacturing sector dropped 0.59 percent; the mining and quarrying sector increased 1.05 percent; the electricity and gas sector grew 1.43 percent; the water supply sector grew 2.46 percent, and the building construction sector dropped 15.06 percent.
Industrial production in August dropped 2.05 percent compared with July. Industrial production between January and August rose 0.39 percent, compared with the same period last year.
Performance by Industries
With regard to the four major industries in the manufacturing sector, the commodity industry saw the highest increase of 2.47 percent, while the metal and machinery industry rose 0.5 percent. The IT electronics industry and the chemical industry, however, declined 0.85 percent and 0.53 percent, respectively.
Due to relatively high base period, the manufacturing sector was unable to maintain the growth trend in August, and saw an annual 0.59-percent decline, the MOEA said. The basic metals industry enjoyed the highest annual 12.14-percent increase, while the electronics parts and components industry increased 2.24 percent, and the chemical materials industry increased 1.46 percent.
The computer, electronic and optical products industry saw a 13.54-percent decrease, while the machinery and equipment industry saw a 11.53-percent drop, and the motor vehicle and parts industry declined 6.43 percent.
MOEA's Future Outlook
The MOEA said that the U.S. economy has become more stabled, and the eurozone economy is recovering.
The upcoming shopping season for western countries is expected to generate momentum for Taiwan's manufacturing sector, the MOEA added. Since major brands are due to roll out new wearable and mobile devices in the remainder of this year, outputs from semiconductor and integrated chip related manufacturers are likely to grow.
On the downside, demand from emerging markets has decreased, hurting Taiwan's exports. In addition, petrochemical and steel manufacturers are scheduled to cease operation for maintenance in the winter, which is expected to affect their output. Considering positive and negative factors, the MOEA said that the manufacturing sector will stay level in the third quarter.
According to the ministry's survey, 11.8 percent of the manufacturers in the nation expect higher production output in September compared with August, while 70.8 percent of those surveyed expect to see the same level of output, and 17.4 percent expected lower production. In response, the MOEA said that the production index in September will drop from August.
The August directional movement index for production output value stood at 49.6. A reading of above 50 in the index indicates an expected increase in output value over the previous month. Therefore, the MOEA expects that September's production index will drop.